Lab workers fear loss of jobs with sale

Saturday

Mar 9, 2013 at 12:01 AM

STOCKTON - Dignity Health, the San Francisco-based owner of St. Joseph's Medical Center and nearby HealthCare Clinical Laboratories on North California Street, is in discussions to sell its clinical laboratory outreach service line, the company confirmed this week.

Joe Goldeen

STOCKTON - Dignity Health, the San Francisco-based owner of St. Joseph's Medical Center and nearby HealthCare Clinical Laboratories on North California Street, is in discussions to sell its clinical laboratory outreach service line, the company confirmed this week.

A statement, sent to employees this week, concerns many of the more than 350 lab workers at the Stockton site who fear the loss of their jobs.

According to a statement, the clinical laboratory outreach service line is "typically provided at patient service centers or draw stations in the community and serve physician offices, skilled nursing facilities, dialysis centers, independent practices associations, etc., of which Dignity Health owns and operates 56 in Glendale, Long Beach, Los Angeles, Redding, Sacramento, San Bernardino, Stockton, Ventura and Woodland. Hospital-based laboratories will remain open."

It is unclear based on the company's statement what the future of the Stockton work force will be, and neither Dignity Health nor a spokeswoman for St. Joseph's would comment further.

Natalie Pettis with St. Joseph's would only confirm that employees received notification that the lab outreach service line was up for sale. A lab employee concerned about losing his job provided The Record with a copy of a letter dated March 6 from Donald Wiley, St. Joseph's president and CEO, informing all lab workers about anticipated changes.

The letter to employees mirrors much of what was provided to media:

"Dignity Health did not make the decision to enter into these talks lightly. The organization's primary interest has been to ensure that individuals in the communities impacted by the sale continue to be able to receive care at locations that are convenient to them.

"In order to ensure that both Dignity Health and the lab outreach service line are optimally equipped to succeed in a reformed health care environment, it was determined that the service line is more likely to stay competitive if it is partnered with an organization that focuses exclusively on this service line. It is expected that many of the draw stations and patient service centers will remain open, as will all of Dignity Health's hospital-based laboratories."

Wiley's letter explained further that a potential sale is still several months away. Draw stations and service centers will continue to operate normally during the period of negotiations and once a buyer is identified.

"We will work closely with all employees who may be affected by the sale to make sure they know their options. This includes working with the buyer to determine whether there are opportunities for employment in their organization, as well as with any affected employee to determine whether there is a job available elsewhere in the Dignity Health system," the letter said.

Wiley went on to state that hospital-based lab employees "will be indirectly affected as well. While the hospital-based laboratories will not be sold, hospitals that work with a community-based laboratory will see a decrease in volume."

In a 2009 story as Stockton's HealthCare Clinical Laboratories turned 25, it was reported the 26,000-square-foot facility employed 365 workers, most with college degrees and advanced training; served customers from Long Beach to Mount Shasta; handled 3 million transactions a year; and earned gross revenue of approximately $80 million annually.

The Stockton site at that time served as the reference lab for 37 Dignity Health hospitals, processing more than 700,000 specimens a year. In one month alone, it issued close to 15,000 patient reports and its customer service staff worked on close to 42,000 accounts.

In his letter this week, Wiley noted he would keep employees informed of significant developments of the proposed sale. Employees with questions should ask their supervisors.

"I anticipate that we will have more to share with you in the next few weeks," Wiley concluded.